Prices

A new summer weather forecast by Weather Services International (WSI) could be bearish for gas prices because of cooler than normal temperatures expected all along the East Coast and throughout California from June through August, which certainly will help to minimize heavy cooling loads and allow greater gas storage injections. However, hotter than normal temperatures in July and particularly in August in the Midcontinent states and Texas will drive up gas demand, helping to offset weaker market conditions elsewhere.

A new summer weather forecast by Weather Services International (WSI) could be bearish for gas prices because of cooler than normal temperatures expected all along the East Coast and throughout California from June through August, which certainly will help to minimize heavy cooling loads and allow greater gas storage injections. However, hotter than normal temperatures in July and particularly in August in the Midcontinent states and Texas will drive up gas demand, helping to offset weaker market conditions elsewhere.

The cash market reacted as expected to Monday’s futures weakness and further declines in fundamental weather support, registering drops between about a nickel and 20 cents at nearly all points Tuesday. Those in the range of 10-15 cents formed a slight majority.

Cash prices caught their second wind Wednesday, with across-the-board gains between a dime and a little more than 20 cents generally representing larger increases than those on Tuesday. Storage buying, making up for nuclear plant outages and a slow rebuild of air conditioning load across the South following a cooler-weather dip earlier in the week were again cited as factors in the run-up.

Rising air conditioning load across the South was insufficient to avert modest to sizeable price declines at nearly all points Wednesday. Flat Southern California border and Transwestern Permian numbers were the exception to declines ranging from about a nickel to about 30 cents in the rest of the market.

Northern Illinois Gas Co. (Nicor Gas) has agreed to pay about $1.14 million in refunds as part of a stipulation and consent deal with FERC’s enforcement office to resolve a series of violations involving transportation, storage and capacity release transactions.

Northern Illinois Gas Co. (Nicor Gas) has agreed to pay about $1.14 million in refunds as part of a stipulation and consent deal with FERC’s enforcement office to resolve a series of violations involving transportation, storage and capacity release transactions.

Driven by high prices, depleted storage, demand growth forecasts and signs that conventional production has at best peaked and at worst begun slipping, Canadian natural gas suppliers are hunting a new generation of reserves that can be put to use fast.

Driven by high prices, depleted storage, demand growth forecasts and signs that conventional production has at best peaked and at worst begun slipping, Canadian natural gas suppliers are hunting a new generation of reserves that can be put to use fast.